Retirement planning: where to start

Retirement can feel like a big question, with a lot to figure out. How much is enough? Where will your income come from? When can you stop working? And how does the Age Pension fit in?

 
The good news is it doesn’t have to be complicated. When you break retirement planning into clear steps, it becomes much easier to take control.

Planning your retirement starts with a simple question: what kind of lifestyle do you want? From there, it’s about building a plan to support it. That could include using your super, any savings or investments you have, and the Age Pension if you’re eligible. 

 
Starting early can make a real difference. Over time, your super has more opportunity to grow through regular contributions and the power of compounding. But wherever you’re starting from, it’s not too late. Even as retirement gets closer, small steps like reviewing your super, contributions and income options can help you feel more confident about what’s ahead.

Not knowing how much is “enough” can feel uncertain. Your retirement number is the annual income you’d like when you stop working, and a guide to the super you may need to support it. 

Start with what you think you’ll spend in retirement, then compare it to recognised benchmarks. The ASFA Retirement Standard  publishes ‘modest’ and ‘comfortable’ spending guides for singles and couples. Keep in mind, these assume things like owning your home outright, so treat them as a guide, not your personal target. Find out more about how much super you should have.  

Turning an income goal into a target super balance is easier with a calculator. Enter your age, super balance, contributions and retirement age to see if you’re on track. You can use tools from  Colonial First State to project your super and future income. Try a few scenarios, like retiring later, adding small contributions or adjusting your spending, and see how your outcome changes. Small tweaks can make a big difference.

Your super will likely be your biggest source of income in retirement. The years leading up to retirement are when you can make the biggest difference to your balance, so it pays to make them count. 

Adding a little extra to your super now could make a big difference later. You can contribute through salary sacrifice or personal contributions. There are annual limits set by the ATO, and going over them may lead to extra tax, so it’s important to understand where the caps sit before you contribute. Explore our guide to super contribution caps and check the latest limits with the ATO. 

 
If you have more than one account, you could be paying multiple fees and insurance premiums. Bringing your super together may help reduce costs and make your money easier to manage. Before you consolidate, check what insurance cover you might lose. Learn more about consolidating your super. 

The way your super is invested can have a big impact on your final balance. That’s why it’s worth reviewing your investment option, long-term performance and fees regularly. Use our compare super funds page to compare performance and fees, or download the app to track your balance over time with graphs and yearly breakdowns.

You generally have three ways to access your super in retirement:

• A regular income stream (like an account-based pension)
• A lump sum for one-off needs 
• A mix of both to suit your lifestyle

The right approach depends on how you want to use your money, now and over time.

You can usually access your super once you reach your preservation age and meet a condition of release, like retiring. For most people, this means from age 60.  
 
This milestone plays a key role in your retirement plan. Explore when you can access your super to understand what applies to you. Eligibility rules apply.  

Many retirees choose an account-based pension, which is a simple way to turn your super into a flexible, regular income while your balance stays invested.  
 
You’ll need to withdraw a minimum amount each year, based on your age. A lump sum can help with larger, one-off expenses. But taking too much too soon could mean your savings don’t last as long as you need them to.  
 
A financial adviser can help you find the right balance for your goals and lifestyle. 

When planning for retirement, it’s not just about your super. For many Australians, the Age Pension also plays an important role, working alongside your super to support your income.

Eligibility depends on your age, and how much you earn and own. These are assessed through income and assets tests run by Services Australia. As your income or assets increase, your Age Pension may reduce, which means your super and pension work together. For example, a higher super balance can mean a lower pension, and vice versa. Because government rules and payment rates can change, it’s important to check the latest details with Services Australia. Want to go deeper? Our guide shows how these tests work and how to make the most of your Age Pension. You can also check your eligibility to find out what you’re entitled to. 

Once you’ve done the groundwork, it’s time to turn your thinking into a clear plan. Bring together your goals, your super and your income options, and decide if you’d like support along the way. 

 
Advice can be as simple or as tailored as you need, from general guidance to a personalised strategy built around your goals. A licensed financial adviser can help you set clear goals, shape how you contribute and draw income, and make sense of how super, tax and the Age Pension work together. We can help connect you with advice as part of your retirement planning. 

 
Whatever you decide, make time to check in on your plan. A yearly review is a great start, and it’s worth revisiting whenever life changes. After all, rules, rates and your own circumstances can shift over time. 

Knowing what to look for can put you back in control. Here are some of the most common mistakes, and how to avoid them.

• Leaving it too late — the earlier you start, the more time your super has to grow.
• Not knowing your number — without a clear income goal, it’s hard to know if you’re on track.
• Paying duplicate fees — multiple super accounts can quietly eat into your balance.
• Underestimating how long retirement lasts — many Australians spend decades in retirement, so your savings need to last the distance.
• Ignoring how super and the Age Pension work together — planning them side by side can make a real difference to your income.
• Setting and forgetting — your life changes, and so do the rules, so it pays to review your plan regularly.